When investing in real estate, the old adage, location, location, location certainly rings true. However, in the ever-evolving world of online real estate, the word location can be beneficial for multiple reasons. Thanks to the multitude of online real estate websites out there, we can not only see the cities that have the best to offer in terms of weather, attractions, or proximity to the ocean, but we can also analyze market trends and see where people are choosing to flock to when buying city real estate online.
To help you sift through the best of the best, here are the top 5 best cities in America to invest in real estate in 2019.
- Orlando, Florida. Forbes voted Orlando the best place to invest in real estate two years in a row, and for obvious reasons. With a steadily increasing rent, low property tax, no state income tax, access to healthcare and attractions, and warm weather, Orlando certainly makes a good case for investing in 2019. If you’re waiting for the best time to invest, however, now is the time. Realwealth Network projects that there will be up to a 35% increase in housing prices by 2021.
- Raleigh, North Carolina. If you’re searching for somewhere with a younger population, Raleigh has been sneaking under the radar since late 2018. With affordable property, high appreciation, a growing population, and a booming economy, Raleigh can be a great place to invest in for younger investors searching to be a few steps ahead of the next market rush.
- Columbus, Ohio. While Columbus may not have the same tourist draw as Orlando, it is definitely a place worth keeping on your radar if you’d like to earn some excellent passive income. It has a slower population growth when compared to places like Seattle or Denver, but home values have increased by 9.2%, and the current rental yield is up to 7.9%. Remember, if you’re investing for the most cash back, it’s not necessarily beneficial to go where everyone is flocking to, but where a steady growth in population and employment are.
- San Antonio, Texas. When most people think of Texas, the first cities on their mind are typically Austin or Dallas. While these cities are definitely being built up, so is the cost of homes. Cities like San Antonio, on the other hand, are still seeing solid population growth, but with an 8% increase in home sales, offering a rental yield of 6.4% (compared to 5.3% in Austin). This uptick in population is also yielding a steady growth in employment, as well, and it is a great option to consider in 2019.
- Atlanta, Georgia. Seeing a large boom in their economy from the tech and film industry, Atlanta has certainly poised itself to be the next place to be in the southeast. With a 4% population growth, 14.1% increase in home values and a rental yield of 5.1%, the only reason it is put at number five on this list is due to their recent bad press due to their stance on certain political issues. Some large film companies and tech giants have threatened to leave the state based on their policies, and that could definitely impact the future of the city.
This list is meant to be as comprehensive as possible, but it should also be noted that there are various cities that have some excellent figures that were not included. Another great option in North Carolina is Durham, which currently has one of the highest population growth rates in the US. Also, if you’re looking for alternatives in Florida, St. Petersburg, Tampa and Jacksonville are other excellent options, mainly due to their high rental yield and lack of income taxes in the state of Florida. Overall, however, the southeast is certainly the place to investigate when it comes time for you to invest in real estate.
When investing in real estate, It is very important to consider multiple factors when making this large financial decision. Make sure you do your due diligence when it comes to finding the right home, as you may find that locations that require higher maintenance costs will eat into your profit margin. Also, if you’re investing in a city with a younger population surge, be sure to take the time to rent to the right people so your home maintains its value. Hopefully, this list helps you start your investment off on the right foot, and you can pick the right city that lines up with your financial goals, weather preferences, and values.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
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While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.